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Should we still look into investing in land?

Assalamualaikum. Happy Tuesday morning guys!Today i want to share something interesting about everyone dream. Own Property.
But let me ask one question. Should we still look into investing in land?

Are you checking at property for sale in
Malaysia as you plan to buy a property on your own? Buying your first own
property to be called home is another milestone achieved in your life. There
are many properties and also lands for sale malaysia. Whether it is for investment purpose or own stay, most
people are still confused on whether it is better to invest in land or just go
for condominium units, apartment units or even commercial properties.
This article will guide you through the benefits of
investing in land.

Limited resource

It is known to everyone that land is getting lesser nowadays as most lands are already being taken up by people or developers to
build new developments. Lands are different from products that can be produced
from the factories. Therefore, it is definitely worth it to have a piece of
land, whether it is for yourself or for investment purpose.

2.Lower maintenance fee

You do not need to pay maintenance fee on
a monthly basis like most condominium or apartment units. In addition, you can
save the money for renovation or refurbishment, carpets or light bulb
replacements, fixing of clogged toilets or leaky roofs. Things are so much
simpler as it is a vacant land with no buildings.

3.Start inexpensively

Not all lands are expensive if you do your
research early. There are online websites that advertise available lands for
sale in Malaysia. You might be able to score a great deal if you do your
homework of searching for lands for sale in Malaysia. Of course, you will also
need to stay within your budget and determine the purpose of buying a land
before you make a major decision of buying a land. After all, it is a huge sum
with great commitment.

4.Profitable

Buying a land is going to be profitable,
even if it is not immediately. Sooner or later, the land is going to be
profitable and you will be able to earn money from there. Here comes the
question: How can I make profit from the land?

a.Buy and hold

First of all, use the buy and hold plan
that you would use like other investments that you have. Let us say you got a
great deal of the land currently and you hold it for 15 years. After that, you
can sell the land and walk away with a great profit. Meanwhile during the 15
years of holding, you could also lease out the land to earn some extra money.
However, this will depend on the market and like any stock market investments,
there will be no guarantees.

Leasing - farmer or hunter

Like what I have mentioned above, you
could lease out your land. If you are lucky and got yourself a farmland, lease it to a farmer as
it is known that farmland will produce bigger returns than having stocks,
mutual funds or bond in the long run. But buying a farmland is going to be more
expensive than just buying a vacant land.

You could also lease out your vacant land
to hunter and hunters are normally willing to pay more for a right land.

Buy at a low price and sell at a high price

Buy low sell high is a famous investing
adage that people are taking advantage of. This will however depend on the area
and also the market at that particular moment. If you are lucky, you might be
able to purchase a cheaper land during the period and then sell it for a higher
price much later, depending on the market.

Seller financing

Getting a bank loan to purchase a land is
difficult. Hence, most potential buyer would opt for seller financing. This
will be a great way to earn extra money for the owner of the land. This is
because the owner could lend the buyer money to purchase the land, with an
agreeable repayment schedule and interest rate that can be higher than the
bank’s interest rate.

Albeit there are many benefits of
buying a land on your own, there are some things that
you should take into account as well. It is no doubt that having a land is
going to be a good investment, but before making a decision to buy a piece of
land, do ask yourself some questions to make sure you are making the right
decision.

First of all, ask yourself why is the land
not occupied. You might want to do a research on the land, make a visit to the
land and find out more on the land characteristics. Do check with the environment,
the zoning laws if there are any, and also the utilities available surrounding
the land. If you are still unsure, you could always engage with a real estate
agent who is knowledgeable in lands to find out more on the information of the
land. Most importantly, bear in mind that buying a land is similar to any other
investments out there. It is definitely not a quick way to get rich as it
requires time and patience. After all, buying a land is still a solid
investment, provided you do it right.

In conclusion, buying a land is still
worth it as it is a solid great investment. However, make sure that you are
able to afford buying a land before making such big decision as you definitely
do not want to get yourself into a huge debt.